Former Cary schools leader accused of undermining board

The Cary Elementary District school board says a former board president has repeatedly attempted to undermine the district's financial future, specifically the district's ability to borrow $15 million the district will need in the next fiscal year.

Current board President Chris Spoerl said Craig Loew, who served as president from 2005 to 2009, contacted the district's lender with the intention of showing the district's financial situation is far worse than the administration has indicated.

In a statement read at Monday's board meeting, Spoerl said the lender, Harris Bank, received a 48-page fax from Loew, outlining errors in the district's financial reporting. Spoerl said the board determined that the purpose of the fax and other actions was to persuade the lenders to withdraw their loan commitment to District 26 in hopes that the district would fail financially. In the event that the district fails, Spoerl said, the state would take over and force a tax increase on the community.

But after reviewing the information from Loew, the bank determined the points were irrelevant, immaterial or wrong, Spoerl said.

The bank subsequently approved the purchase of up to $15 million in tax anticipation warrants or a short-term loan which the district will take out in two transactions. The need for the second tax anticipation warrant is dependent upon the Nov. 2 referendum for a $15 million working cash bond.

Board members said they agreed with Spoerl's decision to make the information public. Board member Vicki Pesch said an individual has a right to question how the district is spending its money, but she said Loew was trying to “cannibalize the district and the community,” using firsthand knowledge and his former position.

“A line has to be drawn,” Pesch said. “Enough is enough.”

Scott Coffey, chairman of the district's finance committee, said Harris Bank is in the district's corner.

Although the district could file a lawsuit against Loew for intentional interference with a business relationship, Spoerl said it would not take legal action.

“It is not the wish of the board to spend the district's resources, and the board's attention on this, when there is so much else to do,” Spoerl said.

Previously, Loew contacted the Illinois State Board of Education to assert that the district's cash balance was misstated by $2 million.

Those assertions were also determined to be irrelevant, immaterial or wrong, Spoerl said.

Loew was not immediately available for comment Monday.